wxyz, i am playing chicken on the sidelines at the moment,...

wxyz, i am playing chicken on the sidelines at the moment, however i saw this and thought it might be of interest.

Even with BHP diversified do you think this could play into any short term correction?


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aUApabnwClwo

Spot Iron Ore Prices May Fall to $70 a Ton, NMDC Says (Update1)
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By Debarati Roy

Aug. 25 (Bloomberg) -- Cash iron ore prices may fall to about $70 a metric ton in the “near term” as China, the world’s biggest buyer, cuts purchases, said Rana Som, chairman of NMDC Ltd., India’s top producer of the steelmaking material.

“This could happen in a few days,” Som said today in a phone interview. The forecast is 26 percent lower than this year’s peak rate of $95 without freight earlier this month, according to Macquarie Securities Ltd.

China’s stockpiles of iron ore to make steel are at 75 million tons, just 0.6 percent below levels last September, when they rose to the highest since at least 2006. The cash price for Australian iron ore delivered to China slumped 9.3 percent on Aug. 21 after Chinese steel prices declined.

Ore prices have likely “topped out” this year as steel prices fell, Liberum Capital analysts said on Aug. 17. The Baltic Dry Index, a measure of commodity-shipping costs, fell 27 percent this month on concern demand may be slowing.